Unlocking the Potential of Social Enterprise Half Day Conference Arc Healthy Living Centre Irvinestown 3 rd March 2016
The Scale & Scope of the Social Economy in NI Ken Nelson
Scale & Scope of the Social Economy Personal experience The emergence of the sector Social economy fundamentals Supporting the social economy Reflections & perspectives
The LEDCOM experience Economic downturn in 1970 s/1980 s : community based response to economic decline Formation of LEDCOM 1985 Larne s first social enterprise initiated by local authority with support from central government & EU Company Limited by Guarantee ( not for profit corporation ) with a volunteer board of directors Charitable status fully assessed & registered with NI Charity Commission
LEDCOM Core Values A sustainable social enterprise with core values : Integrity & professionalism Caring about individuals & customer service Unlocking potential & partnership Making a difference & social impact
LEDCOM s Current Strategic Focus Economic development Business start up & growth Social entrepreneurship Community engagement & employability Property & conferencing Business development/r&d
LEDCOM Group: Managed workspace, business incubation facilities, & conference facilities 3 business sites with 3 social enterprise subsidiaries across Mid & East Antrim : ChainHR : HR services, accredited mgt. & leadership training (CMI/CIEH), provision of temporary employees, recruitment of permanent posts (subsidiary) providing employment opportunities in Mid & East Antrim Business Led NI : business consultancy, evaluations & appraisals, social enterprises corporate governance & board development Heritage Experience Ltd. ( joint venture subsidiary) ; cultural heritage tourism : product/service development & marketing
LEDCOM s Impact Since 1985 LEDCOM has provided c. 10,000 mentoring/information/ advice/training sessions, helping c. 900 new start up business, supporting c. 1500 jobs 69% increase in self employment in Larne : 1981-2001 Supported over c.90 new social enterprises since 1985 with c.250 jobs Currently over 40 tenants with over 300 employees/trainees within all LEDCOM sites c. 1.5 M of social outputs/public benefit investment of free staff & directors services in local communities since 1985 c. 5 million investment attracted to local communities for economic & community development projects
LEDCOM s Approach Emphasis on client needs and quality assurance with regular performance monitoring Account management/ long term customer relationships Ongoing training investment in delivery & support staff Team based approach to problem solving Wrap round incubation providing support for pre-starts/post starts/growth clients VfM/SLA capability & capacity for sub contracting/out sourcing of service delivery from local/central government inc. enterprise support & business support programmes, economic development services
Definition of a social enterprise Organisations that have a social, community or ethical purpose, operate using a commercial business model and have a legal form appropriate to a not-for personal profit status. (DETI)
Social economy values : CARE Commercial Assisting others Return on Investment (both social and financial return) Enterprises
Characteristics of social enterprises Motivated by social goals and environmental goals Profit making but not profit taking Close to and understand the needs of the communities they serve Accountable to their stakeholders, customers and their communities Usually owned and controlled by voluntary boards Deliver added social value Provide value for money Make a social impact
Types of Social Enterprise Social Enterprises Community Interest Companies Local Enterprise Agencies Credit Unions Development Trusts Trading Arms of Charities Co-Operatives Social Firms Housing Associations Intermediate Labour Market Organisations
Emergence of the social economy sector It is estimated that there are over 1,000 social enterprises in Northern Ireland and that social economy activity accounts for approximately 5% of economic activity. Across Europe 3.5 million jobs are provided by social enterprises, delivering a broad range of services.
Social economy history Tyrone Crystal 1971 Belfast Co Op Society 1888 East Belfast Mission 1946 Society of St. Vincent de Paul 1850
Social economy brands you might have heard of..
Northern Ireland Social Enterprises In Action Candle Makers Environment improvements Painting and Decorating Book publishing Handmade Chocolate Delivery of training from first aid to Level 7 in management and leadership Vegetable production and horticulture Transport services Cleaning services Cinema production Outside catering service Manufactory of mops Software and database developer Tourist Accommodation, attractions and events Bespoke training IT Game developers Health care Photographers Restaurants and bars Quality assurance services Wedding stationary handmade Sports training and facilities Arts and craft supplies Media and music production Genealogy services Business services including HR Recyclers Preforming Arts Childcare Design print services Radio stations Office and workshop rentals Teddy bear manufactory Bookkeeping Cafes
Support for setting up & running a social enterprise Social Enterprise Hubs Available to all new or existing social enterprises with an idea for a new product or service. There are 11 hubs located over the 9 Social Investment Fund (SIF) zones in NI. Located in Enniskillen, Strabane, Derry~Londonderry, Ballymena, Lisburn, Downpatrick, Lurgan, North Belfast, South Belfast, East Belfast and West Belfast Social Enterprise team at Invest NI on 0800 181 4422 or socialenterprisehubs@investni.com. Social Entrepreneurship Support: Local government Regional Start Initiative : One2one mentoring, business workshops and business plan development. Social Enterprise NI
Social enterprises & local government Bryson Charitable Group : Bryson Future Skills providing employment and training initiatives to young adults and those living with long term employment Bryson Recycling providing kerbside recycling services 600 staff /100 volunteers :over 23,000 services per day to families and individuals.
Social enterprises & local government : GLL GLL : charitable social enterprise : operating over 255 leisure facilities (14 for Belfast City Council) : largest operator in the UK Delivering outsourced services for local government in areas such as parks & open spaces through to libraries Employ c.8,000 members of staff Outsourced delivery of services to award winning quality standards
NOW NOW delivers high quality training and delivery of employment services for people with learning difficulties in North and West Belfast and the Greater Shankill area. The company employs 30 staff, and has grown to be a key player in its field of supported employment. NOW operates a social enterprise called Loaf Catering, supplying outside catering to the Greater Belfast area and serving the public in its 2 cafes, whilst also giving adults with Learning Difficulties experience, often for the first time, working in the cafes. NOW also owns a CIC (Community Interest Company) called Gauge NI
Changing organisational culture to unlock potential through the social economy
Social enterprise barriers and pit falls Having the wrong business idea Grant dependency Not willing to charge the right rate for the business services Employing the wrong people Trusting staff too much Expecting a customer to use you because you are a social enterprise Being so socially minded that you are of no earthly/economic use Getting the wrong people on the board/ poor governance
Social Enterprise Success Factors Right People Board and Staff SUCCESS The Product / Service and market needed The Finances
Three key reasons behind the failure of social enterprises Poor governance & risk management Not responding to market changes Lack of financial control
Reflections & perspectives : future challenges & opportunities for social enterprises A re-balancing economy Business credibility & recognition/ charities registration Out- sourcing from local & central government Competing effectively & fairly with the private sector Partnering with private & public sectors Driving continuous improvement & change management Effective corporate governance & risk management Keeping the vision & passion alive Succession planning Championing & advocating the sector